1
FUTURESMART MINING™
Tony O’Neill, Group Technical Director, Anglo American Anglo American Analyst Roundtable 20 May 2019
FUTURESMART MINING Tony ONeill, Group Technical Director, Anglo - - PowerPoint PPT Presentation
FUTURESMART MINING Tony ONeill, Group Technical Director, Anglo American Anglo American Analyst Roundtable 20 May 2019 1 CAUTIONARY STATEMENT Disclaimer: This presentation has been prepared by Anglo American plc (Anglo American) and
1
Tony O’Neill, Group Technical Director, Anglo American Anglo American Analyst Roundtable 20 May 2019
2
Disclaimer: This presentation has been prepared by Anglo American plc (“Anglo American”) and comprises the written materials/slides for a presentation concerning Anglo American. By attending this presentation and/or reviewing the slides you agree to be bound by the following conditions. The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. This presentation is for information purposes only and does not constitute an offer to sell or the solicitation, inducement or an offer to buy shares in Anglo American or any other securities. Further, it does not constitute a recommendation by Anglo American or any
No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contain herein. None of Anglo American, its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this material or otherwise in connection with this material. Forward-looking statements This presentation includes forward-looking statements. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding Anglo American’s financial position, business, acquisition and divestment strategy, dividend policy, plans and objectives of management for future operations (including development plans and objectives relating to Anglo American’s products, production forecasts and reserve and resource positions), are forward-looking statements. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Anglo American, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding Anglo American’s present and future business strategies and the environment in which Anglo American will operate in the future. Important factors that could cause Anglo American’s actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period, levels of global demand and commodity market prices, mineral resource exploration and development capabilities, recovery rates and other operational capabilities, the availability of mining and processing equipment, the ability to produce and transport products profitably, the availability of transport infrastructure, the impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, the effects of inflation, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as permitting and changes in taxation or safety, health, environmental or other types of regulation in the countries where Anglo American operates, conflicts over land and resource ownership rights and such other risk factors identified in Anglo American’s most recent Annual Report. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this presentation. Anglo American expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers (the “Takeover Code”), the UK Listing Rules, the Disclosure and Transparency Rules of the Financial Conduct Authority, the Listings Requirements of the securities exchange of the JSE Limited in South Africa, the SIX Swiss Exchange, the Botswana Stock Exchange and the Namibian Stock Exchange and any other applicable regulations) to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in Anglo American’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Nothing in this presentation should be interpreted to mean that future earnings per share of Anglo American will necessarily match or exceed its historical published earnings per share. Certain statistical and other information about Anglo American included in this presentation is sourced from publicly available third party sources. As such it has not been independently verified and presents the views of those third parties, but may not necessarily correspond to the views held by Anglo American and Anglo American expressly disclaims any responsibility for, or liability in respect of, such information. No Investment Advice This presentation has been prepared without reference to your particular investment objectives, financial situation, taxation position and particular needs. It is important that you view this presentation in its entirety. If you are in any doubt in relation to these matters, you should consult your stockbroker, bank manager, solicitor, accountant, taxation adviser or other independent financial adviser (where applicable, as authorised under the Financial Services and Markets Act 2000 in the UK, or in South Africa, under the Financial Advisory and Intermediary Services Act 37 of 2002). Alternative Performance Measures Throughout this presentation a range of financial and non-financial measures are used to assess our performance, including a number of financial measures that are not defined or specified under IFRS (International Financial Reporting Standards), which are termed ‘Alternative Performance Measures’ (APMs). Management uses these measures to monitor the Group’s financial performance alongside IFRS measures to improve the comparability of information between reporting periods and business units. These APMs should be considered in addition to, and not as a substitute for, or as superior to, measures of financial performance, financial position or cash flows reported in accordance with IFRS. APMs are not uniformly defined by all companies, including those in the Group’s industry. Accordingly, it may not be comparable with similarly titled measures and disclosures by other companies.
3
Operating Model P101 FutureSmart Mining
Digitalisation The Intelligent Mine Technology Innovation The Concentrated Mine The Waterless Mine The Modern Mine Sustainability Sustainable Mining Plan
4
1. Provides clarity 2. Produces stability 3. Reduces variability
5
Concentrated Mine™ Waterless Mine Intelligent Mine Modern Mine
6
Challenge Precision mining with minimal energy, water and capital intensity Approach Concentrate the Mine™ concept:
Value CPR: 20% increase in throughput, 85% recovery of water Bulk sorting: 5% grade improvement, 20% more throughput Ultrafine recovery: 2-4% recovery improvement Novel Leach: 60-80% recovery
7
Challenge ~75% current portfolio located in water constrained regions Approach
Value Reduced footprint Increased water recovery Reduced TSF risk Removal of expansion constraints
8
Challenge Re-dressing environmental legacies to recover low grade mineral concentrates Approach 1. Novel leach 2. Coarse particle recovery Value Re-dressing environmental legacies Reduction in water intensity Reduction in energy intensity Removal of constraint elements to enable new low grade recovery
9
Challenge Transformational use of renewables Approach
Value Reduce GHG on large site by 30% in plant and 100% in trucks Increase truck power by 5% Energy security Price resilience Move to hydrogen economy Next generation mining vehicles Host community participation
10
Challenge Everyone goes home safely every day Approach
explosives, no scraper-winches
profile equipment
machines
intelligent machines Value Safer and more efficient working environment Transition pathway in existing operations
Work
11
Challenge Eliminate wet tailings Approach Reduce risk
Eliminate
Value Increased water recovery >80% for similar cost Reduced footprint Increased water recovery New value options
Tailings
12
Challenge Create a dry stable stack from wet tails Approach
conventional thickened tailings
Value Water recovery for additional production Rapid transition to dry, stable stack Enables future repurposing for land use Engineered to eliminate the risk of liquefaction Low opex – comparable to wet tailings
13
2% recovery/yield 5% process throughput 30% process stability 5% energy efficiency
14
Providing business insight, empowering better decisions
Approach
platform that supports the entire value chain
interpret data
next generation apps that are mobile-friendly
helps with scaling our value generation Value Speed to market Scale of deployment IT/OT integration delivers value Operations decision support focused 1 2 3 4
Criteria
rate cards)
discounts, investments)
System Integration
(SI work required across all DA functional channels, effort will include: app development, specialized input, data lake design/build, change management)
Component
Data Analytics & Presentation Layer Data Lake Base Platform
Result
AA will prime PMO, product development & vendor management. Preferred SIs complete design, development and delivery with AA. (may vary by use case).
Options1
AA to Prime Support
AA and best of breed solutions based on capability and strategic
leveraging AA reference architecture and Data Lake.
MINING DATA LAKE
io io
Ingestion services
MINING PROCESSING GEOSCIENCE MARKET PRICES
NEXTGEN APPS
Technical expert
MinePlan
ANALYTICS DATA SCIENCE
Data scientist
Sensors Real-time
Historians
Fleet Management Systems Application Data
Consumption services QC
15
Challenge Predict cavity risk to optimise operating approach Approach
parameters and learn from outcomes
Value Predict cavity risk ahead of mining operations Improves safety Boosts productivity Adaptable to changing conditions
Before After
16
Textural Search …
Challenge Precision geological information in minimal time Approach Use machine learning to augment geoscience expertise and automate logging & material classification Value Dramatic decrease in drill to resource model time Increase in precision logging and material classification Increased SME availability to build better model interpretations Reduced risk to personnel
17
20191 20181 2020-221 $2-3bn $0.5bn $3-4bn
Operating Model & P101 Projects Technology & Innovation Other cost & volume Met Coal P101
Technology and innovation:
$0.4bn
1. EBITDA volume and cost variance. Volume variance calculated as increase/(decrease) in sales volumes multiplied by prior period EBITDA margin. For assets in the first 12 months following commercial production all EBITDA is included in the volume variance, as there is no prior period comparative. Cost variance includes inventory movements.
18
19